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How to Give a College Savings Gift with Clariity.com

Philip Taylor — Thu, 17 Mar 2011 07:04:42 +0000

Some relatives of mine just had their first baby. We haven’t had the opportunity to see them in person and bring a gift, so I wanted to get them something until we could get over to see the new little one. Being the savings nerd that I am, I like the idea of giving a savings-related gift, especially amidst major life changes like this. A few years ago we gave my wife’s younger brother, a recent high school graduate, a gift of savings from ING Direct. It was well received.

Today, in the case of my relatives with the newborn, I decided to look for a gift card or something easy to send. A friend recently mentioned Clariity.com as a secure online platform to be able to give a gift card that would go towards a college education (through a 529 Plan), or towards any other desired savings goal. After browsing around the Clariity website, I decided to give it a try. When you visit Clariity, here’s what you’ll see:

Give a Clariity gift card to help fund a future college education.

From this screen you are able to change the amount of the gift from $25 to $50, $75, $100, or any other amount. You can also change the purpose of the gift from college education to:

home purchase
car purchase
wedding
vacation
or recipient’s choice

Nice. I like options. Once you enter your email address and the receiver’s email address (the only info Clariity will have on them), you can proceed to the next screen. On the next page you can add a message to the recipient. You will also have to provide a password so that you can come back and check the status of your gift.

Finally, also on this page you will need to provide your payment details. I chose to pay via PayPal and was done in a few seconds. FYI, LemonGrass Holding Company is who you will be paying via PayPal. Here’s the screen that I was presented with once I paid:

Clariity gift card confirm for college savings.

What happens next? Well, I received a confirmation email from Clariity that my gift was sent and that I would receive a notice when they used it towards a goal. So how do they use it? They will have to open a 529 Plan or savings account through Clariity.

When I signed in with my account those are the options I’m personally presented with, so I’m sure the card recipient will see the same thing. Can the recipient pull the $25 out without investing it into a 529 Plan or savings account? I’m not sure. I couldn’t find this information on the website. I guess at a minimum, the recipient could open up a savings account with the money and then withdraw it from there if they want or transfer it to an account they already have. Maybe this is a good time to stop down and say that’s it’s a good idea to check with your recipient first before you send over the gift.

Edit: After I left some feedback regarding the gift giving process, Clariity emailed me to inform me that they are quickly rolling out a new FAQs section which should address some of my concerns above.

I think Clariity is providing a very unique service with this gift giving feature. If you know of someone in need of a kick-start towards a better financial future, then check out Clariity for your gift giving needs.

More About Clariity

Clariity doesn’t stop with being just a gift giving service. That’s really just their front-end. They are in the business of helping you achieve your financial goals. Check out this interview with the CEO of Clariity to understand more about their mission and vision. They plan to roll out much more in the future. I suggest you also check out this full review of Clariity to really understand what they can offer you beyond gift giving.

Check out this view of the Clariity dashboard:

The Clariity Dashboard

I’ve never seen an online financial dashboard quite as interesting, have you? From this map you can navigate the different sections of what Clariity has to offer. Similar to what SmartyPig and Mint offer with their “goal” functionality, Clariity allows you to design goals and put them into play across most areas of your personal finances. With regard to the “where” of placing these goals, Clariity presents the best options for savings accounts and an extremely robust section of 529 Plan accounts (FYI, referring is how they make their money).

I was impressed by how user friendly the dashboard and goal features were. I also made time to check out their “estate planning” section, which includes the ability to write your own last will and testament for free. I told you they were more than gift cards!

So there you have it. Now you know how to give the gift of financial dreams using Clariity. I look forward to seeing what more they do with their online tool, and I look forward to hearing from you if you try their service.

How to Give a College Savings Gift with Clariity.com is a post from: PT Money: Personal Finance by PT.
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Lending Money to Family Members: Worth the Risk?

Sandra Parker — Wed, 22 Dec 2010 11:00:25 +0000

When it came to giving out advice, there were two things that my momma always said. One, never go to bed mad and two, never lend money you can’t live without. Of course, she never really told me how to deal with the guilt that came along with having to say no, but I soon figured out that having a guilty conscious was a lot less burdensome than having an empty bank account.

Dealing with relatives who are constantly looking to you to bridge the gap between their last paychecks and the end of the month can be tough. There is a lot of guilt placed on you if you choose to say no. I, unfortunately, know this feeling well.

Working in the financial industry, I know the ins and outs of consumer lending. I also know how tough it can be to get a loan if you’ve had some credit issues. So, instead of watching my family members throw good money after bad using payday lenders or high-interest personal loans, I chose to help wherever I could.

But, I recall a certain instance where a close cousin of mine asked to borrow $1,000, claiming that her husband, who had been chronically unemployed for six months, had finally found a job and needed the money to purchase a few hand tools and work clothes. She had borrowed smaller amounts from me in the past and though I felt a little nervous about lending her so much cash, I was happy to be in a position to help her.

We sat down and created a payment schedule she felt sure she could keep and I gave her the money. One month passed by without payment and then two. I began to call her, asking her to repay the money she’s borrowed, but she would duck my calls and my messages. When I did catch her at my grandmother’s house during Thanksgiving, I got a lot of attitude and a million excuses as to why she couldn’t pay. Six months later, I gave up and wrote the loan off as a loss. My cousin and I haven’t spoken since.

So, what do you do when a relative asks for money? How about when it becomes habit? How do you avoid the guilt of saying no to family members in need?

1. Start Saying No

While this step won’t be easy and will most certainly not make you popular, the sooner you stop loaning money, the sooner they will stop asking for it. For many people, it’s much simpler to borrow cash from a family member than to change their spending habits. And while this is not necessarily the wrong thing to do for an emergency situation, it simply isn’t a long term solution to a much deeper financial situation. You have to make asking you for money uncomfortable in order to make it stop.

2. Provide Alternatives

Instead of loaning money that you will likely never see again, offer alternatives instead. Offer suggestions as to how to chronic borrower can supplement their income including offering to “hire” them to give them an opportunity to earn the money rather than lending or giving it away. You could also help them by offering your services. You could babysit, cook, or offer hand-me-downs in order to fulfill a need instead of loaning money.

Editor’s note: another solution might be for your family member to submit a loan request with a peer lending site. You could then help fund their loan and only take on a portion of the risk.

3. Procrastinate

When a relative asks for money, don’t say yes right away. Even if you have the means to lend the money, taking a few days before offering the loan gives the borrower the time to see if he or she can find an alternative method to address the situation. By simply saying, “Let me think about it”, you give yourself a few days to evaluate the loan request and force the borrower to evaluate the criticality of his situation. And, while this tactic may be less than effective with already established moochers, it may be enough to stop someone who has never borrowed from you before from becoming one.

4. Don’t Borrow Money From Family

It is important for you to set a good example. Simply put, if you don’t want family members borrowing from you, don’t borrow from them. Borrowing is a learned behavior and many family members firmly believe in reciprocal generosity, meaning that if you borrowed from Cousin Joe last year, he will remember it when he needs to borrow money in the future.

If you do decide to loan a relative money, never lend more money than you can afford to lose. You should draw up a contract between you in order to formalize the loan and create a legal recourse should you not receive repayment. And, last but not least, be prepared to accept the fact that your relationship with your relative will change after money has exchanged hands.

Have you ever loaned or borrowed from family? What was the experience like?

Lending Money to Family Members: Worth the Risk? is a post from: PT Money: Personal Finance by PT.
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How Much Will You Give in 2010?

Philip Taylor — Sat, 02 Oct 2010 20:54:30 +0000

How much do you plan to give in 2010? Is it more or less than you gave last year? Is the current recession or a job loss affecting your ability to give as much as you want?

My budget is a bit tighter this year. Just at first glance I don’t think we’ll end up giving as much as we were able to last year. But one thing I’m reminded to do each year around this time is to give more than just money. I can give time, services, or even something as simple as a smile. It doesn’t have to be a monetary gift. As a Christian, these words from Jesus really speak to me:

“Give away your life; you’ll find life given back, but not merely given back—given back with bonus and blessing. Giving, not getting, is the way. Generosity begets generosity.” (Luke 6:38 MSG)

I would encourage you to check out the 10 Day Give, the event put on by Bob from ChristianPF. It’s a totally free event, where you can join forces with others who are giving something for 10 straight days. Technically the event started yesterday, but you can join in at anytime.

How Much Will You Give in 2010? is a post from: PT Money: Personal Finance by PT.
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No related posts.

Facebook CEO Mark Zuckerberg Gives $100 Million for Education

Philip Taylor — Sun, 26 Sep 2010 21:29:35 +0000

This week we learned that Mark Zuckerberg’s newly formed Startup: Education foundation will give $100 Million to Newark, New Jersey’s public school district. I found it interesting that Mark has no real ties to Newark. It appears that he was just looking for a place to invest his money where he felt like it would be put to good use. From his blog on Facebook:

Like any startup, the key to making this work is finding great leaders and the right market that’s ready for change. After a lot of research, I’ve decided to put my full support behind Newark Mayor Cory Booker and New Jersey Governor Chris Christie to help their efforts to reform the schools in Newark.

I think it’s great that Mark is doing this. Apparently, Newark’s school district has over 40,000 students, and only around 54% graduate from high school. The money is aimed at helping the district break free from the bureaucratic hold that has supposedly created this poor performance.

Are you on Facebook? Like PT Money: Personal Finance

Some critics have pointed to the fact that this donation is only $100 Million (about 1.6% of Mark’s supposed net worth) and that Mark may be doing this because of the negative press expected from The Social Network, the movie about Mark hitting theaters soon. I saw Mark reluctantly talk about his contribution on the Oprah show last week. And from my perspective, Mark appears to be doing this earnestly. Besides, $100 Million is a lot of cash to give over, regardless of your worth. What do you think?

Here are some good links from around the web last week:

Times are tough. You may be tempted to pull money from your 401K account to help you through a hard time. If you go this route, you want to avoid paying penalties on your withdrawals. Here’s a great guide: How to Make a 401K Hardship Withdrawal. And you should know that the banking rules have changed. To get you up to speed on the changes, see: Tips for Avoiding Overdraft Fees. Finally, if you are struggling to make your mortgage payment, or know someone who is, here’s a nice guide for attempting to avoid foreclosure: How to Stop Foreclosure.

The government sure has been involved with our financial life over the past 2-3 years. Here’s a rundown of some of the more notable changes: Home Affordable Modification Program, Small Business Jobs Act, New Health Care Benefits.

And finally, don’t make a money move that you might regret: 5 Money Moves You’ll (Possibly) Regret Later and 10 Things You Should Never Do in a Recession.

Here’s some carnivals I participated in last week: Wealth Builder Carnival, Best of Money Carnival, and the Festival of Frugality. Thanks to all the hosts! Great job.

Photo by Andrew Feinberg

Facebook CEO Mark Zuckerberg Gives $100 Million for Education is a post from: PT Money: Personal Finance by PT.
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5 Good Things Your Money Can Do…for Others

Philip Taylor — Wed, 23 Jun 2010 22:25:39 +0000

When it comes to personal finance, it’s easy to be a bit self-centered. We ask questions like: How much can I save? How can I make more money? How much do I need to retire? We spend a lot of time focusing on fixing our own problems. Now I’m not here to knock personal responsibility and taking care of your family. I value those things.

Today, though, at least for a moment, I challenge you to look past yourself. How can your wealth accumulation (income minus expenses) help others? I’ve got a few ideas below. Contribute your own in the comments below.

Provide a Small Business Loan – One of the absolute coolest tools on the Internet is Kiva.org. Kiva is a social lending (i.e. peer lending) site that only deals with interest-free loans. Small business owners around the globe in need of a few dollars to grow a business idea can receive a loan from you, facilitated by the Kiva program. You get your money back, and someone somewhere is creating a better life for themselves.

Donate to a Human Need – We are blessed here in the US with our standard of living. Others around the globe aren’t so fortunate. You know this. Drill down into the charity of your choice with a visit to CharityNavigator.org.

Give an Extra Tithe – If you have extra funds, consider an extra tithe to your Church. No one said you couldn’t give more than 10%. Be sure to consider a special designation of the funds if you want to support a particular project (i.e. mission trip).

Invest in a Child’s Education – I love this. Help someone afford college. Set up a 529 college savings plan or contribute to one already open. This is a tax-advantaged account that help to ensure the funds will be used on educational expenses. Start a 529 with a free $25 bonus.

Give an Unexpected Gift – Surprise a family member or friend with a gift. Give something consumable like a restaurant gift card or a plane ticket. Take them somewhere they would never think to go on their own, and give them an experience they could never afford themselves.

Photo by Mr. Kris

5 Good Things Your Money Can Do…for Others is a post from: PT Money: Personal Finance by PT.
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On Saving and Giving

Guest — Sun, 24 Jan 2010 11:30:43 +0000

America’s Response to Haiti

The world has paused and been shaken to its moral core as we see such graphic and haunting images of the suffering that continues in Haiti’s earthquake aftermath. I feel proud to be an American seeing how the entire country has rallied behind another country’s unfair misfortune.

Americans have been galvanized as evidenced by the outpouring of generosity on fundraisers such as Larry King’s celebrity telethon, which raised nearly $9 million in two hours. This got me thinking about how we can incorporate giving into our budgets and use this spirit of charity as a defining moment to teach our kids about giving as well.

The Giving Power of the U.S.

As Americans, we forget that we are still the richest country in the world, even in a bum economy and with all of our job losses. According to the World Bank, approximately 2.8 billion or nearly half of the world’s population lives off of just $1 per day. Clearly, they aren’t living, which is why nearly 800 million are hungry every day with no food at all.

Spend Less and Give More

What if we used this spotlight in Haiti as an opportunity to self-sacrifice on a daily basis for charity. What I mean is, let’s think of ways we can save money regularly and then give that money to someone in need. For example,

Bringing Lean Cuisine to work for lunch instead of spending 10 bucks at the neighborhood Chinese buffet. Consider it a type of paying it forward. I sponsor a World Vision child by doing this a couple times a month and the rewards have been so gratifying.
There are plenty of other non profit organizations that cater to the needs of children and their families here and abroad that have longstanding reputations free from any scandal.

Sponsoring a child in another country can be a great educational tool for your own children as well. Most organizations provide letters and updates and allow you to send care packages and correspondence to your child. Having your own kids think about their “sister” or “brother” in a third world country and seeing the impact that their American dollar can make on changing a child’s life is a deep character building experience that breeds compassion, understanding and deepens a child’s sense of self beyond their small world.

Recycling can be another way to save in order to give. Consider using the extra dollars you get from your cans and bottles to not only save Mother Earth, but her children too.

We are so fortunate in the U.S. to have access to things that we take for granted like running clean water, plenty of food resources and safe infrastructure that we can’t pass up the opportunity to bring life-changing resources to others, just by saving a little bit of our own hard-earned change for the good of humanity.

This is a guest contribution from Karen, a frugal writer.

Photo by United Nations Development Programme

On Saving and Giving is a post from: PT Money: Personal Finance by PT.
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Spending Less on Gifts in 2010

Guest — Tue, 19 Jan 2010 17:52:45 +0000

Like nearly every other budget-conscious American, this year my husband and I have made a commitment to spend less and save more. While often easier said than done, I am most excited about my latest line item to tackle—gifts, gifts and more gifts. From birthdays to baby showers, these fun but all to frequent expenses can add up.

So, I have thought of a few ways to ensure that you and I, the givers, can always be cheerful and our recipients can be delighted even with the most modest of budgets.

Give From the Heart: Adding a personal touch to a gift can be an affordable alternative to an expensive trip to the department store. All it requires is some thought about the person and your relationship to them. Personal gifts like making someone’s favorite dessert or dish is a thoughtful and often unexpected way to say I love you to a family member or friend. I recently made Southern Blackberry Cobbler for my husband during the holidays and it brought back fond memories for him of his deceased grandmother, who would make the dish for him as a child.

Framing a recent picture of you with that special person is also a wonderful keepsake. Include an intimate note of appreciation, detailing how grateful you are for them. Don’t rely on Hallmark to say it for you, say it from the heart and that note will make more of an impression that friend than all of the other gifts from Bloomingdale’s.

Make it Pretty: Making gifts does not have to look any less polished than a purchased gift either. Pretty, decorative and creative packaging can go a long way in complimenting a less expensive homemade gift, especially if the recipient is a woman. We go gah-gah over bows, frilly accents and fun containers. My favorite store for fabulous packaging is The Dollar Store!

Buy in Bulk: Nope, this doesn’t just apply to shopping at Sam’s and Costco. Buying gifts in advance and when you see them on sale is a great way to have gifts on hand for any occasion and to save money. For example, I started a gifts pantry, where I keep a modest inventory of gift-giving items, from lotions to stationary to candles. I find great items at Michael’s, which has fragrant candles, beautiful note cards and fun trinkets like personalized stamps, and decorative journals. Another favorite is buying luxury lotions from Bath and Body Works and Victoria Secrets when they have their 6 for $30 deals. I stock up on all my girlfriends’ favorite scents for their birthdays.

With a little creativity and planning, you can keep your per person gift budget to a minimum, so that when there are occasions where being frugal may be difficult (i.e. wedding registries and baby showers) you have the extra money to go the extra mile.

This is a guest contribution from Karen, a frugal writer.

Spending Less on Gifts in 2010 is a post from: PT Money: Personal Finance by PT.
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How To Donate To The Haiti Earthquake Relief Effort

Philip Taylor — Sun, 17 Jan 2010 12:00:02 +0000

This is being republished with permission from Kyle from Amateur Asset Allocator. Thanks, Kyle!

Here’s How You Can Help

Here are a few reputable charity organizations in the thick of the action. I encourage you to seek out other donation opportunities, but also caution that some greedy thieves will attempt to take advantage of your sympathy and syphon well-meaning donations away from the relief effort for their own personal gain. It’s sad, but that’s life. Be sure to check out any charity you’re thinking of donating to. All of the following charities are large, reputable, and very well-known. They are also registered 501(c)(3) charities, meaning your donations are 100% tax-deductible.

Yele Haiti Earthquake Fund - Donate online at this site or text YELE to 501501 to automatically donate $5. The $5 charge will appear on your phone bill. This is the fund set up by Wyclef Jean, an popular musician and Haiti native.

American Red Cross – You can donate to the American Red Cross online on their donation page. Be sure to choose “disaster relief” if you want your money to go towards Haitian relief (and the relief of upcoming disasters, wherever they may be). You can also donate $10 directly to the Haitian relief fund by texting HAITI to 90999.

UNICEF USA Haiti Earthquake Relief Fund – You can donate through UNICEF via their online donation form. UNICEF’s relief efforts focus on children.

Partners In Health – You can donate to Partners In Health’s Stand With Haiti fund via their online donation page.

Remember, the need doesn’t end when the relief workers start coming home in the next few days. That’s when it just beings.

More info on other PF Blogs:

@Four Pillars: Please Donate To Haiti Earthquake Victims
@Million Dollar Journey: Haiti Earthquake Relief: How You Can Help
@No Debt Plan: Save Ways To Help Haiti
@Cash Money Life – How You Can Help the Relief Efforts in Haiti

How To Donate To The Haiti Earthquake Relief Effort is a post from: PT Money: Personal Finance by PT.
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5 Gifts That Will Bring Your Family Together This Christmas

Philip Taylor — Thu, 11 Dec 2008 11:35:56 +0000

Is your family in need of more quality time? Here are 5 gifts you could give your family this Christmas that are sure to lead to more time together:

A Tent

Camping is one of my favorite frugal family activities. A nice, solid tent is a necessity when it comes to heading outdoors. Surprise the family with a new tent this Christmas and make plans to hit up your nearest state park as soon as the weather permits.

New Board Game

Let me be the first to introduce you to Ticket to Ride. I’ve been meaning to do a full-blown review of this game I am now addicted to: Ticket to Ride. It’s a fast-paced strategy game that’s also a bit of a geography lesson.

There are several different versions, but I’ve heard the best is the Marklin (German) edition. This just happens to be the one I’ve played. It’s more pricey than traditional board games, but it will give you hours of fun with your family. Recommended for ages 10 and up.

A New Pet

They’re a big responsibility, and not to be purchased without fully thinking it through, but a new pet will give your family someone to rally around. It will also help to get you more active. Taking the dog for a walk could become a nightly tradition for you and your kids. A new pet is a great way to teach responsibility to your kids.

Not ready to commit to a new pet? Take a trip this Christmas down to your local pet shelter and volunteer for a while.

An Interactive Music Video Game

Rock Band and Guitar Hero are the most notable here. “Hey, check out Mom on the drums?” When else are you going to get to say that? I’ve had a great time playing these interactive video games with my family for hours. I just wish there was a version with a set of songs that everyone in the family knew.

Shop for an Angel

The gifts don’t all have to be about receiving. Helping someone else out during the Christmas season is always a great idea. It’s also something your entire family should get involved in. Head down to your nearest Angel Tree and choose and angel for your family, or have each of your family members pick out an angel. Each angel will have the name and age of a boy or girl in need of some Christmas love. Contact your local Salvation Army to find an angel tree near you.

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Looking for a more frugal gift to give? Try one of these 50 Frugal Gifts You Can Give This Christmas.

5 Gifts That Will Bring Your Family Together This Christmas is a post from: PT Money: Personal Finance by PT.
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Poverty in the United States – Blog Action Day 2008

Philip Taylor — Wed, 15 Oct 2008 16:09:14 +0000

Blog Action Day 2008 is today, October 15th. Thousands of other bloggers across the world are writing on the same issue today: poverty. Why? Simply to raise awareness of the problem and get a discussion going.

In my mind, like many issues, the problems here in the States get lost in the discussion of poverty. A quick fact to give you perspective:

Poverty in the United States is cyclical in nature with roughly 12% to 16% living below the federal poverty line at any given point in time, and roughly 40% falling below the poverty line at some time within a 10 year time span.

The facts are that a lot of people in the U.S. are poor…somewhere around 35 million. I think if we solved our poverty issues in the States, as a stronger Nation we could then help to solve some of the World’s massive poverty issues.

So, can poverty in the U.S. be “solved”? And if it can, what is the solution? Government programs? Education? Food? (it’s hard to believe people are going without enough food here in the U.S., but they are)

I encourage you to check out my friends in the Money Life Network, who stepped up today and have shared some great posts on poverty:

Causes of Poverty at Free From Broke.
Various Poverty Topics at MIB Smarter Money.
Images of Poverty at Remodeling This Life.
Poverty and Micro Loans through Kiva at Bible Money Matters.

If you’d like to give to an organization that’s involved with solving poverty, the Blog Action Day website suggests Heifer International.

Poverty in the United States – Blog Action Day 2008 is a post from: PT Money: Personal Finance by PT.
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